Growing Fast, Losing Money

StreamNest is a made-up video app. Its number of users has roughly doubled each of the last two years, but it spends more than it earns and has never made a profit. Its stock price is high compared to its sales.

Bo makes the bull case (optimistic)

Fast user growth can turn into large profits later, once the company stops spending so heavily to grow.
Many well-known companies lost money in their early years while they built up a customer base.
If growth continues, today's price might look reasonable in hindsight.

Bea makes the bear case (cautious)

There is no guarantee the company ever becomes profitable. Plenty of fast-growing companies never do.
A high price already assumes years of success. If growth slows even a little, the stock could fall a lot.
A company that loses money depends on raising more cash, which gets harder when interest rates are high.

Which case do you find more convincing?

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Growing Fast, Losing Money

Bo makes the bull case (optimistic)

Fast user growth can turn into large profits later, once the company stops spending so heavily to grow.
Many well-known companies lost money in their early years while they built up a customer base.
If growth continues, today's price might look reasonable in hindsight.

Bea makes the bear case (cautious)

There is no guarantee the company ever becomes profitable. Plenty of fast-growing companies never do.
A high price already assumes years of success. If growth slows even a little, the stock could fall a lot.
A company that loses money depends on raising more cash, which gets harder when interest rates are high.

Which case do you find more convincing?